The correct option is
C is well-known
Option A: The article, 'a' is used before a noun or a noun phrase. In this option, 'a' is followed by an adjective 'well-known', after which there is no 'noun'. The correct phrase would be 'is a well-known fact'. As the noun is missing,
the given phrase is grammatically incorrect. Option B: In the sentence, the words 'It is knowing' is grammatically incorrect as the verb, 'know' is not used in present continuous form.
Option C: The sentence, 'It know that pickpockets operate in this area' is grammatically incorrect. This is because the third person singular pronoun, 'it' has to be followed by 'verb+letter s'. In option C, the letter 's' is missing after the verb, 'know'.
Given the above, options A, B and C are incorrect.
Option D: The sentence, 'It is well known that pickpockets operate in this area' is grammatically correct. Hence, option D is correct.